Do members want the bells and whistles? Understanding the effect of direct and partner benefits in hotel loyalty programs

ABSTRACT

As a way of increasing the perceived value of hotel loyalty programs, hoteliers are partnering with non-hotel brands to differentiate and drive member engagement. We examine the effect of such strategic alliances on the loyalty to a member program and further test a structural equation model with n = 469 active loyalty members. Our model investigates whether tier status and satisfaction function as mediators of the effects of a strategic alliance on brand loyalty. Our findings indicate that the benefits that loyalty programs and partnerships with non-hotel brands offer can positively influence brand loyalty when the member’s tier status and satisfaction mediates.

KEYWORDS:

• Hedonic value
• loyalty program
• partnerships
• strategic alliances
• symbolic value
• utilitarian value

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by California State University, Dominguez Hills [Research, Scholarly and Creative Activities Grant]